Two-Unit Medical Office
New
For Sale
$816,000
2231 Peggy Ln, Garland, TX 75042
CO-zoned property with an established 30-year tenant and office or medical use positioning.
Property Size3,150 SF
Price / SF$259.05
Days on Market6
Property Features for 2231 Peggy Ln
General Information
Standard status
Active
Size
3,150 SF
Zoning
CO
Additional Details
Office Units
2
Building Details
Year Built
1982
Buildings
1
Listing Agency:
eXp Commercial | Texas
Listed By:
Judy Ratsamy Saldana · License #635411
(817) 915-2825
Source:
Expcommercial
Added: Sep 2
Changed: Sep 7
Last Checked: Sep 7 at 4:29AM
Displayed information is deemed reliable but is not guaranteed and should be independently verified. All listing content including descriptions, pricing, images are the copyrighted material of eXp Commercial | Texas
Investment Insights
Based on property information with market context.
This medical office property contains a 3,150-square-foot building divided into 2 units. Constructed in 1982, the asset carries CO zoning and is positioned for office or medical occupancy. A tenant has remained at the property for 30 years, providing an established occupancy history.
Located at 2231 Peggy Ln in Garland, Texas, the property is near the VA and within the broader Garland business area. The site offers a defined two-unit configuration for an owner or investor seeking a medical office asset with a long-standing tenancy and documented office-related use potential.
Located at 2231 Peggy Ln in Garland, Texas, the property is near the VA and within the broader Garland business area. The site offers a defined two-unit configuration for an owner or investor seeking a medical office asset with a long-standing tenancy and documented office-related use potential.
Key Highlights
- 3,150 SF medical office building with 2 units
- CO zoning supports the property’s office‑related classification
- Built in 1982
Financial Insights
Estimated NOI and Cap Rate
NOI = area × lease_rate × (100 − vacancy) / 100 × (1 − expense_ratio). Net Operating Income — what the owner takes home each year before mortgage payments and income tax. Effective rent (asking rent minus vacancy losses) minus operating costs (taxes, insurance, maintenance, management).
NOI / Yr
$42,457
Cap rate = NOI / list price × 100. Capitalization rate — annual return on a fully cash purchase, before financing. NOI divided by price. Higher means more income per dollar invested, but usually also more risk or older condition. 5–8% is typical for stabilized commercial property; double digits often signal distressed deals.
Cap Rate
5.20%
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$849,140
$849.1K
Cap Rate 7%
$606,529
$606.5K
Cap Rate 9%
$471,744
$471.7K
Market Conditions
NOI Build-Up for 3,150 SF
Vacancy — income lost from leasable area expected to sit empty during the year, subtracted from gross rent.
EGI (Effective Gross Income) — gross rent minus vacancy losses, the realistic income before paying operating costs.
OpEx (Operating Expenses) — recurring costs to operate the property (property tax, insurance, utilities, maintenance, management); excludes financing and capital improvements.
NOI (Net Operating Income) — income a property generates after operating costs but before financing and taxes.
Gross rent
$78.6K $24.96/SF
− Vacancy
−$7.9K −$2.50/SF
EGI
$70.8K $22.46/SF
− OpEx
−$28.3K −$8.99/SF
NOI
$42.5K $13.48/SF
Area
Garland, TX
Vacancy
10.00%
Lease Rate
$24.96 /SF/Yr
Expense Ratio
40.00%
Simulate Cap Rate and NOI
Suggested Prices Based on Cap Rates
Cap rates vary significantly by property type, market, and asset quality.
Typical U.S. stable-market ranges:
Multifamily — 4.5% to 6.5% (Class A in primary markets often sub-5%; Class C in secondary markets 6%+)
Industrial / Logistics — 5.0% to 7.0% (compressed heavily in recent years due to e-commerce demand)
Office — 6.5% to 9%+ (wide spread post-2020; CBD Class A vs. suburban Class B varies dramatically)
Retail — 5.5% to 8.5% (grocery-anchored on the low end, unanchored strip centers higher)
Hospitality / Hotels — 7.5% to 10%+ (higher due to operational risk)
Self-Storage — 5.5% to 7.5%
Medical Office — 6.0% to 7.5%
Net Lease (single tenant, credit) — 5.0% to 7.0% depending on tenant credit and lease term
Rules of thumb:
Primary markets (NYC, SF, LA, Boston, DC) trade at lower cap rates than secondary/tertiary markets, often by 100–200 bps (bps, aka basis points; 1 bp = 0.01%).
Class A assets trade ~50–150 bps tighter than Class B, and Class B tighter than Class C.
Cap rates move inversely with price — a lower cap rate means a higher price for the same NOI.
Spread to the 10-year Treasury is a common benchmark; historically 200–400 bps over the 10-year.
Cap Rate 5%
$849,140
Cap Rate 7%
$606,529
Cap Rate 9%
$471,744
Alternative Uses
Best Use
Office B
$2.58M
$2.26M – $3.01M
NOI $180,885 @ 7.0% cap · market cap 22.17%
Second Best
Healthcare Medical
$606.5K
$530.7K – $707.6K
NOI $42,457 @ 7.0% cap · market cap 5.20%
Theoretical Best
Office A
$3.78M
$3.31M – $4.41M
NOI $264,582 @ 7.0% cap · market cap 32.42%
Zoning and permitted uses should be independently verified with authorities.
Property Analytics
Property Profile
Current Use
Lease Details
2
Office units
Location Intelligence
Trade Area within ½ mile
1,003
Businesses Nearby
Under-served
Demand for This Use
Explore this area
Business Placement
Demographics for 75042, TX
39,148
Population
11,791
Households
3.3
Avg Household Size
33
Median Age
16%
College-Educated
69%
High-School Grad
7.6 sq mi
ZIP Area
5,151
Density / Sq Mi
$63,531
Median Household Income
$32,476
Median Earnings
$1,336
Median Rent
$221,300
Median Home Value
Market
Vacancy Rate% for Office in South region
Questions? Ask Rey
Realmo’s AI knows this listing — price, zoning, demand, history. Ask anything.
Frequently Asked Questions
What type of property is this?
Medical Office Space - CO-zoned property with an established 30-year tenant and office or medical use positioning.
Where is this medical office space located?
The property is located at 2231 Peggy Ln Garland, TX.
What is the asking price?
The asking price for this property is $816,000.
What are key features of this property?
This property features: 3,150 SF medical office building with 2 units; CO zoning supports the property’s office‑related classification; Built in 1982
